DEVELOPING PRICING STRATIGIES AND PROGRAMS

(Kotler 15th edition)

1. ______ is what consumers feel the product should cost.(fair price : pg 504,table)
2. ______ is the reservation price or the maximum cost consumers would pay. (upper-
Bound Price: pg 504,table)
3. _______is the lower threshold price or the minimum most consumers would pay.(Lower-
Bound Price: pg 504, table)
4. “the market is highly price sensitive and a low price stimulates market growth” which
pricing stratigy is sutable in this condition? (market-penetration: pg 508,para 1)
5. _______ is the pricing in which prices start high and slowly drop over time. (Maeket-
skimming: pg 508,para 2)
6. _______ are costs that do not vary with productionlevel or sales revenue. (fixed cost : pg
511,para 3)
7. Price is the one element of the marketing mix that produces revenue. (page:483, 1st para)
8. Inorder to gain maximum market share TEXAS Instruments used which of the pricing
strategy?.(page :491, 3rd para)
a. Market penetration strategy
b. Skimming
c. Cost plus pricing
d. Special pricing
9. A seller can successfully charge a higher price than competitors if it can convince cuPrice
is the one element of the marketing mix that produces revenue. (page:483, 1st para)

10. Decline in the average cost with accumulated production experience is called the
experience curve or learning curve. (page495, 1st para)
11. Cost cutting cannot go so deep as to compromise the brand promise and value delivered.
(page495 7th para)
12. The most elementary pricing method is to add a standard markup price to the
13. Price experiments can vary the prices of different products in a store or of the same
product in similar territories to see how the change affects sales. (page: 493 3rd para)
14. Brands such as Starbucks, Aveda, Victoria’s Secret, BMW, and Viking have positioned
themselves as quality leaders in their categories, combining quality, luxury, and premium
prices with an intensely loyal customer base. (page; 491 9th para)

15. _____________sets a ceiling on the price the company can charge for its product. (page
494 1st para )
a. Price
b. Demand
c. Supply
d. cost